Irish government takes aim at Grant Thornton duo for “misleading” them over true costs

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Bankrupt tycoon Sean Quinn has hit out at the joint administrators of Quinn Insurance for “destroying” the Irish insurer, according to a report in the Irish Independent.

In a statement released yesterday, Quinn said: “The administrators completely sidelined us and effectively set about destroying one of the most profitable companies in Irish corporate history, while blaming the previous management in the process.”

The costs of bailing-out Quinn are being probed in the Irish High Court this week. The court has been trying to find out how the costs to Ireland’s Insurance Compensation Fund for rescuing Quinn could have risen to €1.65bn, when it was estimated two years ago that the insurer could be bailed out with no cost to the fund.

Irish Finance Minister Michael Noonan also blasted joint administrators Michael McAteer and Paul McCann, of Grant Thornton, saying the Irish government was “misled” by them about the true cost of the administration of Quinn Insurance, which has doubled to €1.65bn - a cost to be covered by a 2% levy on consumers’ policies.

“The minister cannot understand how you, as highly remunerated professional administrators with the support of highly remunerated actuaries and auditors, could not have had a greater insight into the total increased cost at an earlier stage,” a civil servant wrote on Noonan’s behalf.

A spokesman for Noonan said the administrators were appointed by the court, and that pay and performance issues had “nothing to do with him”.

The Irish government has repeatedly insisted Quinn and his family members must comply with a High Court order to return €500m worth of foreign assets.

But McAteer and McCann rejected suggestions they misled the government, blaming the culture at Quinn Insurance of suppressing losses.